Drake Tax – Form Availability and Tax Changes: Arkansas

Last Updated: October 13, 2026

Supported Forms

The following Arkansas forms are supported in Drake Tax. Forms denoted with can be e-signed.

2025

1040

1041

1065

1120

1120-S

New Forms

• AR-KREC – Members Reconciliation of Income, Deductions, Credits, and Other Items

• AR1100-REC – Reconciliation Schedule

• AR1100-WH – Withholding Summary

2024

1040

1041

1065

1120

1120-S

New Form

AR-718 – Arkansas Corporation Special Industry and Alternative Appointment (Corporation, S Corporation, and Partnership packages)

Modified Forms

• AR1000F, Individual Income Tax Return Full Year Resident – Lines have been renumbered

• AR1002F and AR1002NR, Arkansas Fiduciary (Nonresident) Income Tax Return – Updated standard deduction to $2,410

• AR1000RC5 has been changed to AR1000-DD

• AR1000TC, Tax Credits – Line “Inflationary relief” has been removed

• AR1075, Deduction for Tuition Paid to Post-Secondary Educational Institutions – Updated the following qualifying “50% of Weighted Average Tuition” amounts:

  • Two-year colleges – $2,523

  • Four-year colleges – $5,012

  • Technical institutes – $1,515

• AR1100CT, Arkansas Corporation Income Tax Return – The form layout has been modified and lines have been renumbered

• AR1100NOL, Net Operating Loss Schedule – The form layout and instructions have been modified

• AR1100REC, Corporation Income Tax or Pass-Through Entity Tax Reconciliation Schedule – Lines have been renumbered

• AR2210, Penalty for Underpayment of Estimated Tax – New lines have been added

Program Updates

The following screens have been added:

• 718 (AR-718 Special Industry Apportionment)

• AR1100NOL

Tax Law Changes

• Act 532 of 2023 (Amends Arkansas Code Annotated 26-51-205 (Corporations)) – The maximum corporation income tax rate has been reduced to 5.1% for all taxable income exceeding $25,000 for tax years beginning on or after January 1, 2023. The maximum income tax rate for corporations remains 5.9% for all taxable income exceeding $25,000 for tax years beginning on or after January 1, 2022, and beginning before January 1, 2023.

• Additional Tax Credit for Qualified Individuals (Act 1 of the Second Extraordinary Session of 2021) – Allows an additional tax credit for taxpayers who have a net income of up to $26,900 and files their tax return in a timely manner.

• Credit for Developmentally Disabled Dependents (Act 191 of the General Session of 2023) – Eliminated the requirement for re-certification of a developmental disability that is expected to continue indefinitely. If claiming this credit, use Form AR1000TC. Complete line 7, and enter the children’s information on the form (7A-7F – one child per line). If this is the first time using this credit, attach Forms AR1000-DD and AR1000TC to the return. If Form AR1000RC5 was valid on January 1, 2022, Form AR1000-DD is not required to be submitted. This credit is permanent and no longer requires a renewal every five years; however, Form AR1000TC must be submitted annually. The credit will follow the child (regardless of the caretaker) and can only be claimed on one tax return per year.

• Individual Income Tax Rate Reduction (Act 1 of the Second Extraordinary Session of 2024) Marginal Income Tax rates for 2024 have been amended, and the top rate will be reduced to 3.9%.

• Members of an entity that participates in Pass-Through Entity Tax should include all income from the PET return on the individual return. Use Form AR-OI to back out the income or losses reported on the Pass-Through level. Do not include the amount of tax paid on your behalf as withholding.

• Remote Work (Act 1019 of the General Session of 2021) – A nonresident AR taxpayer who is paid a salary, lump sum payment, or any other form of payment for work inside and outside of Arkansas is only taxed on the amount of income earned while the taxpayer was physically located in Arkansas. For remote workers who perform all duties from outside Arkansas, no income is taxed. If duties are performed both inside and outside of Arkansas, only the portion that reasonably can be allocated to work performed in Arkansas is taxable.